Leases

12 Months Ended

Dec. 31, 2019

(2) Leases

The Company currently leases various facilities and equipment under cancelable and noncancelable operating leases. The accounting for the Company’s leases may require judgments, which include determining whether a contract contains a lease, the allocation between lease and non-lease components, and determining the incremental borrowing rates. Leases with an initial noncancelable term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. The Company has also elected to combine lease and non-lease components on all classes of leased assets, except for leased towing vessels for which the Company estimates approximately 75% of the costs relate to service costs and other non-lease components. Variable lease costs relate primarily to real estate executory costs (i.e. taxes, insurance and maintenance).

Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year at December 31, 2019 were as follows (in thousands):


2020	$	33,374
2021		25,911
2022		23,098
2023		19,162
2024		15,330
Thereafter		92,991
Total lease payments		209,866
Less: imputed interest		(43,085	)
Operating lease liabilities	$	166,781

As of December 31, 2018, future total rentals on the Company’s noncancelable operating leases were $278,602,000 in the aggregate, which consisted of the following: $97,091,000 in 2019; $30,062,000 in 2020; $21,818,000 in 2021; $20,263,000 in 2022; $17,429,000 in 2023; and $91,939,000 thereafter.

The following table summarizes lease cost for the year ended December 31, 2019 (in thousands):

Operating lease cost	$	39,064
Variable lease cost		2,326
Short-term lease cost		31,340
Sublease income		(420	)
Total lease cost	$	72,310

The following table summarizes other supplemental information about the Company’s operating leases as of December 31, 2019:

Weighted average discount rate			4.0	%
Weighted average remaining lease term		11 years